Correlation Between CNOOC and Taiji Computer
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By analyzing existing cross correlation between CNOOC Limited and Taiji Computer Corp, you can compare the effects of market volatilities on CNOOC and Taiji Computer and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CNOOC with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Taiji Computer.
Diversification Opportunities for CNOOC and Taiji Computer
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNOOC and Taiji is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and CNOOC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CNOOC Limited are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of CNOOC i.e., CNOOC and Taiji Computer go up and down completely randomly.
Pair Corralation between CNOOC and Taiji Computer
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.67 times more return on investment than Taiji Computer. However, CNOOC Limited is 1.5 times less risky than Taiji Computer. It trades about 0.15 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.42 per unit of risk. If you would invest 2,703 in CNOOC Limited on October 14, 2024 and sell it today you would earn a total of 122.00 from holding CNOOC Limited or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Taiji Computer Corp
Performance |
| Timeline |
| CNOOC Limited |
| Taiji Computer Corp |
CNOOC and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Taiji Computer
The main advantage of trading using opposite CNOOC and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Taiji Computer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Taiji Computer will offset losses from the drop in Taiji Computer's long position.| CNOOC vs. Ningbo Tech Bank Co | CNOOC vs. Guosheng Financial Holding | CNOOC vs. China Minmetals Rare | CNOOC vs. GRG Banking Equipment |
| Taiji Computer vs. Maoming Petro Chemical Shihua | Taiji Computer vs. Jinling Hotel Corp | Taiji Computer vs. Wuxi Chemical Equipment | Taiji Computer vs. Xiangtan Electrochemical Scientific |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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